LONDON, Sept 7 (Reuters) - Britain's Cadbury (CBRY.L), the world's second biggest confectionery group, has rejected a $16.7 billion bid approach by Kraft Foods Inc (KFT.N) but North America's biggest food group still hopes it can clinch a deal.

Kraft said on Monday it had offered 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share in the hope that it can create a "global powerhouse in snacks, confectionery and quick meals" with combined revenues of about $50 billion.

Based on Kraft's own closing share price of $28.10 on Sept. 4 and a sterling exchange rate of $1.6346, the offer values each Cadbury share at 745 pence and the company as a whole at 10.2 billion pounds ($16.66 billion).

The offer is a 31 percent premium to Cadbury's closing share price of 568 pence on Sept. 4, Kraft said.

Cadbury declined to comment on the statement from Kraft.

Cadbury's board had rejected the proposal, Kraft said in a statement, adding that it was "committed to working toward a recommended transaction and to maintaining a constructive dialogue". The U.S. company said it had published details of its approach in order to "encourage and further that process". Continued...